The Euro saw a bearish trend against most of its major counterparts during last week's trading session. The Euro dropped about 250 pips against the Dollar, about 100 pips against the Pound and over 200 pips against the Yen.
Two main reasons continue to push the Euro lower against the major currencies. The first reason is the Greece debt crises. The Euro-Zone seems to be reluctant to offer a final rescue plan at the moment, and investors respond with less and less faith in the European currency. It appears that the Euro will continue to slide until the problematic Greek financial issues will be resolved. The second reason of the Euro's freefall is the disappointing economic data from the Euro-Zone. The European Economic Sentiment failed to reach expectations for 40.1 points and has dropped from 40.2 on February to 37.9 points on March. This has been the sixth consecutive drop in this survey. This further indicates the fragile condition of the Euro-Zone that still seems as if the economic recession is not completely over.
Looking ahead to this week, a batch of data is expected from the Euro-Zone. Special attention should be given to publications from the German economy such as the German Business Climate and the German Consumer Climate. In addition, the European Central Bank President Trichet is expected to deliver two speeches this week and traders are advised to pay attention as harsh volatility usually takes place during his speech.